IBX Circle

Looking for New Team Members To Sell Land!

We are looking for salespeople! We broker coastal property throughout the Inner Banks of North Carolina to both investors and end users. If you are looking to supplement your income, sell full time, or learn/get into the land sales business give me a call. 1-800-916-3864.

Go Green Baby!

The Inner Banks has an incredible and diverse eco system. From its fresh water creeks and the brackish waters created from where they converge with the salty ocean of the Atlantic, the area is home to vast numbers of flora and fauna. This combination of nature wonder makes the Inner Banks a very special place to visit and live.

Because of the attractive Inner Banks lifestyle, new communities are always in development. And with new communites come new homes. And so, we thought we would introduce some building ideas that marry the exclusiveness of coastal community living with green and sustainable home design... we like the idea of keeping the Inner Banks beautiful.

Here are some links to eco home websites that we found when searching the web.
Enjoy the browse!

Living Homes
www.livinghomes.net

Living Homes has an awesome line of eco friendly and modern home styles made from green materials. Some of the designs include full length glass windows perfect for sitting and watching the coastal waters. This company makes LEED certified prefab homes and has a great website full of pics and home designs.

Glidehouse
www.glidehouse.com

Each of Glidehouses dwellings have either Gold or Platinum LEED rating. They have contemporary designs and since they are modular, have 50-75% less construction waste than a traditional built home. They have options such as foam insulation, green roofs... they use LED lighting, recycled and sustainable materials, and are designed for use with alternative energy resources such as wind generation and solar energy.

Versadome
www.versadome.com

Really cool looking modular "pod" that has been designed to connect to one another to create your building of choice.

PoleHouses
www.polehouses.com

They've got house plans, they've got kits. Beautiful structures that are one of the strongest structures that can be economically built which is hurricane, earthquake and flood "resistant. Cool looking designs that have a summer lovin beach look to them.

Floating Homes
www.floatinghomes.de

LOVE the bathroom in these floating homes. LOVE the slick look of them. LOVE the full glass windows. Love...love...love......

NEWBIE: Getting Feet Wet in Land Investing

The world of land investing can be daunting for the first time buyer.   In this post I will be presenting some of the things to look for when purchasing land.   While this posting will not answer every question you may have, it will provide you with a solid foundation of knowledge in which to grow. If you have a specific concern please feel free to contact me directly, I would be happy to offer further assistance.

An Overview:

First… Intent.
Why are you buying land in the first place? Is it for future use? A place to build a second home or are you going to retire there? Is it for investment purposes? Are you looking to hold it for several years and then sell it? Keep in mind that your initial reasoning behind your purchase may change. It is quite possible that a lot you had bought for an investment with the intention of selling in 5 years ends up being the perfect place to build your ideal getaway. Something like that is always a possibility. But, knowing why you are looking in the first place helps in the decision process. For example, if you know the property will be for future use, then strong emotions could come into play when buying it. As the locale for you and your family where memories will be created, “falling in love” with a property can trump the logistics, numbers, and logic involved in making a decision. While letting emotions influence your decision is OK, you still want to research what it is your buying so that later down the line, the “love” isn’t replace with “hate”. For example, you buy the property and build your 3,500 sq foot dream home on it. Later you realize that there are no protective covenants in the community… the reason why your next door neighbor set up a single wide on his/her lot. On the other hand if your goal is investment and investment only then emotions need to play a less prominent role. For example, you find an excellent priced lot in a wonderful community near a major city with all the amenities. The numbers all work and work well. If you view it and feel, “Ehh, ho hum” and then pass on the opportunity completely based on those emotions, then you could be letting many great investments pass you by.

Second… Know Your Resources.
Purchasing land has been a solid and stable way to create wealth for decades. But, as with any investment an inherent risk is always involved. Take the time to look over your finances. Know your spending limits before you head out and begin actively gathering information on parcels for consideration. Research what options are available to you and look into alternative methods of funding. For example, with the volatile stock market many people are now discovering that they can use their 401ks/IRAs for land investment purposes.

Third…Research The Properties.
Your overall goal is to determine if the true value of the property meets/beats the asking price and then project, based on different factors, whether the property has the potential to grow in value. This is where doing your homework comes into play. Some of the main factors that effect the value of property are location, type of property, size of property, property features, is it located in a flood zone, is it located by itself or in a community with protective covenants, what percentage of the community infrastructure is completed, and amenities.

Fourth…Compare.
After looking at and collecting information on various properties, compare the individual particulars of each lot. One of the mistakes inexperienced buyers/investors do is lump all of the types of property together without viewing the details and then wonder why one costs a fraction of the other. Not all property is created equal. For example, you find two properties labeled “waterfront”. One costs $29,900.00 and the other $99,000.00. Why the difference? This is where you begin comparing the different factors.

Waterfront $29,900.00
Location: Remote location, over 60 miles from nearest city with population under 10,000. City has had limited growth over last decade.
Type of Property: Waterfront
Size of Property: ½ acre
Property Features: Tree’d.
Elevation: Above sea level.
In Flood Zone: Yes.
Community: 30 Lot Total with No Protective Covenants.
Infrastructure: Community infrastructure is 85% completed.
Amenities: Community boat ramp.

Waterfront $99,000.00
Location: Within 15 miles of major cultural hub and city with population of over 1 million. City still expanding and growing.
Type of Property: Waterfront
Size of Property: 1 acre
Property Features: Combination of both.
Elevation: Above sea level.
In Flood Zone: Yes.
Community: 25 Lot Total with Protective Covenants.
Infrastructure: Community infrastructure is complete.
Amenities: Boat ramp, pool, tennis courts, and day dock.

After comparing the features of each property the reason for the price difference becomes clearer. You now have a greater understanding of what differentiates these properties… you’re off to a good start. This is the key to purchasing land, know your facts and gather as much information as you can to make informed and educated decisions. But there is more, and each of the above factors can be broken down even further. For example, under the “waterfront property” factor there would be additional particulars that you would want to be familiar with such as the body of water it is on-deep or shallow, amount of water frontage, access to bigger water, amount of wetlands, and boat dockage… key factors in determining the property value. I will explain each factor in greater detail after this 3 Part-NEWBIE Series Overview in the NEWBIE DETAILS Series.

Fifth… Where to go for Financing.
You’ve researched and decided that you’re ready to purchase your new lot. If you are buying through a land developer or broker many times they will have purchasing options in place for you to choose from. Although not restricted to using their options, it is worth investigating. Many times the land developers and brokers establish a rapport with a particular bank ensuring that the clients they refer get certain benefits. If you choose to go your own route be aware that certain factors could lead to larger expenses. For example, if you and your bank reside in one state and the property you are purchasing is in another your bank might charge more for such things as an appraisal, recording fees or higher points. Regardless of the method you end up choosing make sure you ask questions and always, compare the facts.

Sixth… Types of Financing.
There are many options in financing, too many to completely list here.   But, a few of the most common methods are:

Cash: Pro… own the property free and clear.   Con… ties up cash that you could possibly use to secure other investments that came along.

Lot Loan: Interest rates are low right now which makes investing at this time advantageous. Loan options include Straight Amortization - 10 to 30 years depending on the bank, and a Balloon Option - 1 to 5 year balloons amortized over a 10 to 30 year period.

IRA/401K: Most IRAs and 401k’s will need to be converted to a self-directed IRA. This allows you to invest your money the way you want to, within the IRS guidelines, without having an administrator to choose where they want the money to go. Many times plan administrators are only allowed to place the money you invest within certain areas as guided by the company in which they work. While a popular investment strategy for many, it does take control out of your hands and puts it in the hands of someone else. For those of you who wish to have a more hands on approach to directing your investments research a Self Directed IRA. By allowing you to choose where your money is going you might enjoy the greater freedom, power, and choices you gain in handling your own portfolio.

Whatever options you choose know that your decision will affect your goals in regards to property turnover and your carry costs, factors that affect your profit margin. So take the time to research carefully.

In Conclusion…

This 3 Part Newbie Overall just touches the surface of the factors involved in making a solid land purchasing decision. The more you know, the better chance you have of stepping away with a positive outcome. Knowledge and doing your homework won’t eliminate all the risks in land investing, but it will eliminate the unnecessary ones. So ask the pro’s questions, go to seminars, read books, join networking communities, take classes… educate yourself. Ultimately, the final decision to buy is yours.   Take ownership of your decisions instead of letting it fall completely on the shoulders of others, and you’ll be setting the stage for success.

Self Directed IRAâ€™s = Safe Harbor

Are you looking for a safe harbor for your money? If so, you are not alone. Most people today are confused, upset, and down right mad at the loss of their hard earned money in the volatile stock market. Luckily there is a choice to help you save the money you have left and rebuild what you have lost, it’s called a Self Directed IRA.

While a self directed IRA is new concept to many people, it is not new to the investment world. 98 percent of the IRA market, approximately $3.7 trillion, is associated with the traditional providers and traditional IRA’s. These banks and brokerage houses, with their heavy marketing dollars, created a misconception that all you could do was buy stocks, bonds and mutual funds. While they preached that diversity was what they were offering, the bottom line was that the money was tied up in intangible assets… assets that as the stock market fell, lost their value. Stats say that 90 percent of the IRA market is dominated by firms that don't give you the full list of opportunities to diversify, leading investors into the uncomfortable position of inadvertently putting all their eggs into one basket.

One of the main advantages of a self-directed IRA is that account holders can achieve true diversification through both traditional and alternative investments. One can immediately see the benefit of investing not only in traditional stocks, bonds and mutual funds but also in the specialized accounts of the self directed IRA. These specialized accounts would include anything that personally benefits the investor or close family members (except for life insurance, collectibles and investments as restricted by the IRS), and enables investors to acquire tangible assets such as land, rental property, and businesses. Utilizing these options can help provide a steadier heading during choppy financial seas.

Another benefit the self directed IRA involves is using retirement investments to purchase land. Because most land purchased this way is made in cash, the income generated is pure profit directed back into the IRA. This allows investors to have a consistent cash flow off of their retirement investments, something you would not see in traditional investing methods.

While this recession has wreaked havoc on many people’s investment portfolios, it has had a positive outcome… the smarter investor. Instead of blindly putting money into areas traditional providers direct them, the new investor is taking the time to learn about their investment options. This is the smartest strategy of all. Sit down, research and educate yourself. Check into your options, ask questions, and take an active and hands on approach to your investing dollars. By doing so, you’ll not only have a portfolio diversified into many different assets, but you’ll also be more flexible with market trends. That’s the kind of investing that leads to a safer harbor.

HELLO BLOG BUDDIES!

Thanks to the suggestion from an awesome colleague here on Bigger Pockets I have decided to start a my blog. I hope you enjoy the posts and I welcome all comments and questions...let's get started!